So far this week, gold trading has performed well with its appreciation pattern following the continuing depreciation situation of the US dollar.
The rising inflation rate in the United States (US) which is a concern by members of the Federal Reserve (Fed) is also a factor in the attraction of gold as a hedging asset from inflation.
On the XAU/USD price chart which measures the value of gold against the US dollar, after the surge in the price of gold above the level of 1800.00, the uptrend continued until as of last week the price of gold has reached a high of around 1890.00.
However, continuing earlier this week the price is still flat below that level with the latest gold price target still concentrated at 1900.00.
The price increase looked a bit gloomy at the beginning of the week but the price decline was supported at the 1875.00 level which is seen as the price pull level since last week.
The beginning of the European session today (Tuesday) again saw the price surge from that level past the Moving Average 50 (MA50) barrier on the 1 -hour time frame of price movement to give a positive bullish signal.
The situation that sees the US dollar pushed to move weaker in the near term will see gold prices soar to hit the latest highs again this week.
If the 1900.00 price level is successfully passed, analysts expect the gold price to reach up to the high level of 1950.00 which was the resistance zone in early January.
If a fall in the price of gold occurs, focus on the price zones of 1850.00 and 1820.00 which previously displayed the price reaction for signals to investors.
The lower decline will definitely return to focus on the RBS (resistance become support) 1800.00 zone again.
